|
|
| |
| |
|
| | (ii) | the trustees or managers of the other scheme are able and |
|
| | willing to accept payment in respect of the member’s |
|
| | transferrable rights, and |
|
| | (iii) | the other scheme satisfies requirements prescribed in |
|
| | regulations made by the Department or the Department |
|
| | of Finance and Personnel; |
|
| | (b) | for acquiring rights allowed under the rules of a personal pension |
|
| | |
| | (i) | the benefits that may be provided under the personal |
|
| | pension scheme by virtue of the acquired rights are not |
|
| | |
| | (ii) | the trustees or managers of the personal pension scheme |
|
| | are able and willing to accept payment in respect of the |
|
| | member’s transferrable rights, and |
|
| | (iii) | the personal pension scheme satisfies requirements |
|
| | prescribed in regulations made by the Department or the |
|
| | Department of Finance and Personnel; |
|
| | (c) | for purchasing from one or more insurers such as are mentioned |
|
| | in section 15(4)(a), chosen by the member and willing to accept |
|
| | payment on account of the member from the trustees or |
|
| | managers, one or more annuities which satisfy requirements |
|
| | prescribed in regulations made by the Department or the |
|
| | Department of Finance and Personnel; |
|
| | (d) | for subscribing to other pension arrangements which satisfy |
|
| | requirements prescribed in regulations made by the Department |
|
| | or the Department of Finance and Personnel. |
|
| | (2B) | The Department of Finance and Personnel may by regulations provide |
|
| | for sub-paragraph (i) of subsection (2A)(a) or (b) not to apply in specified |
|
| | circumstances or in relation to specified schemes or schemes of a |
|
| | |
| | (2C) | In subsection (2A) “unfunded public service defined benefits scheme” |
|
| | means a public service pension scheme that— |
|
| | (a) | is a defined benefits scheme within the meaning given by section |
|
| | 34 of the Public Service Pensions Act (Northern Ireland) 2014, |
|
| | |
| | (b) | meets some or all of its liabilities otherwise than out of a fund |
|
| | accumulated for the purpose during the life of the scheme.” |
|
| | (4) | In section 91(5)(a), for “subsection (2) is” substitute “subsections (2) and (2A) |
|
| | |
| | |
| | (a) | after “subsections (2)” insert “, (2A)”; |
|
| | (b) | after “subsection (2)” insert “or (2A)”. |
|
| | (6) | In section 92 (further provisions concerning exercise of option under section 91), |
|
| | in subsection (2)(b), after “subsection (2)” insert “, subsection (2A)”. |
|
| | (7) | In section 96 (withdrawal of applications), in subsection (2), after “subsection |
|
| | (2)” insert “, subsection (2A)”. |
|
| | (8) | The amendments made by this section have no effect in relation to an application |
|
| | made under section 91 of the Pension Schemes (Northern Ireland) Act 1993 |
|
| | |
| | (9) | Until the coming into force of the first regulations made under a provision of |
|
| | section 91(2A) of the Pension Schemes (Northern Ireland) Act 1993 specified in |
|
| | the first column of the table, regulations made under the provision of section |
|
|
|
| |
| |
|
| | 91(2) of that Act specified in the corresponding entry in the second column apply |
|
| | (with any necessary modifications) for the purposes of the provision specified in |
|
| | |
| Provision of section 91(2A) |
| Provision of section 91(2) |
| | | | | | | | | | | | | | | | | | | | | | |
|
| | Member’s explanatory statement
|
|
| | This amendment makes for Northern Ireland provision parallel to that made by NC25. |
|
| Secretary Iain Duncan Smith |
|
| | |
| | To move the following Clause— |
|
| | | “Reduction of cash equivalents: funded public service defined benefits |
|
| | schemes: Northern Ireland |
|
| | (1) | The Pension Schemes (Northern Ireland) Act 1993 is amended as follows. |
|
| | (2) | In section 93 (calculation of cash equivalents), in subsection (1)— |
|
| | (a) | after “verified” insert “— |
|
| | |
| | (b) | at the end insert “, and |
|
| | (b) | where a designation has been made under section 93A, |
|
| | in accordance with regulations under section 93B.” |
|
| | (3) | After section 93 insert— |
|
| | “93A | Designation of funded public service defined benefits schemes |
|
| | (1) | The relevant Department may designate a funded public service defined |
|
| | benefits scheme as a scheme to which regulations under section 93B are |
|
| | to apply for a specified period of no more than 2 years. |
|
| | (2) | The power under subsection (1) may be exercised only if the relevant |
|
| | |
| | (a) | there is an increased likelihood of payments out of public funds, |
|
| | or increased payments out of public funds, having to be made |
|
| | into the scheme so that it can meet its liabilities, and |
|
| | (b) | the increased likelihood is connected with the exercise or |
|
| | expected future exercise of rights to take a cash equivalent |
|
| | acquired under section 90. |
|
| | (3) | The power under subsection (1) may be exercised in relation to the whole |
|
| | |
| | (4) | In the application of subsection (2) to part of a scheme, paragraph (a) is |
|
| | to be read as if it referred to the scheme’s liabilities relating to that part. |
|
| | (5) | A designation under subsection (1)— |
|
|
|
| |
| |
|
| | (a) | may be extended (on more than one occasion) for a period of no |
|
| | |
| | |
| | (6) | The relevant Department must give notice in writing of a designation or |
|
| | its extension or revocation to the trustees or managers of the scheme |
|
| | (except in a case where the relevant Department is the trustees or |
|
| | |
| | (7) | If the trustees or managers of a funded public service defined benefits |
|
| | scheme, or part of such a scheme, that is not designated under this section |
|
| | consider that the conditions in paragraphs (a) and (b) of subsection (2) are |
|
| | met in relation to the scheme or part they must notify— |
|
| | (a) | the Department of Finance and Personnel, and |
|
| | (b) | (where relevant) each Northern Ireland department by whom, or |
|
| | with whose approval, the scheme was established. |
|
| | (8) | If the trustees or managers of a scheme, or part of a scheme, that is |
|
| | designated under this section consider that the conditions in paragraphs |
|
| | (a) and (b) of subsection (2) are no longer met in relation to the scheme |
|
| | or part they must notify— |
|
| | (a) | the Department of Finance and Personnel, and |
|
| | (b) | (where relevant) each Northern Ireland department by whom, or |
|
| | with whose approval, the scheme was established. |
|
| | |
| | “funded public service defined benefits scheme” means a public service |
|
| | |
| | (v) | is a defined benefits scheme within the meaning given by section |
|
| | 34 of the Public Service Pensions Act (Northern Ireland) 2014, |
|
| | |
| | (w) | meets its liabilities out of a fund accumulated for the purpose |
|
| | during the life of the scheme; |
|
| | “local authority” means a district council constituted under section 1 of the |
|
| | Local Government Act (Northern Ireland) 1972; |
|
| | “payment out of public funds” means a payment provided directly or |
|
| | |
| | (x) | out of the Northern Ireland Consolidated Fund; |
|
| | (y) | by a local authority; |
|
| | “the relevant Department”, in relation to a funded public service defined |
|
| | benefits scheme, means either of the following— |
|
| | (z) | the Department of Finance and Personnel, or |
|
| | (aa) | any Northern Ireland department by whom, or with whose |
|
| | approval, the scheme was established. |
|
| | (10) | The Department of Finance and Personnel may by regulations make |
|
| | modifications of the definition of “the relevant Department” in |
|
| | |
| | (4) | After section 93A (inserted by subsection (3)) insert— |
|
| | “93B | Reduction of cash equivalents in case of section 93A designated |
|
| | |
| | (1) | The Department of Finance and Personnel may by regulations provide |
|
| | that where, under section 91(1), a member of a designated scheme |
|
|
|
| |
| |
|
| | requires the trustees or managers to use a cash equivalent for acquiring |
|
| | flexible benefits under the rules of another pension scheme the cash |
|
| | equivalent must be reduced by an amount determined in accordance with |
|
| | |
| | (2) | Regulations under subsection (1) may not require a reduction in cases |
|
| | where a scheme ceases to be a designated scheme before the date on |
|
| | which the trustees or managers do what is needed to carry out what the |
|
| | |
| | (3) | Regulations under subsection (1) may produce the result (alone or in |
|
| | conjunction with regulations under section 93) that the amount by which |
|
| | a cash equivalent is to be reduced is such an amount that a member has |
|
| | no right to receive anything. |
|
| | (4) | In subsection (1), “designated scheme” means a funded public service |
|
| | defined benefits scheme, or part of such a scheme, that (on the date of the |
|
| | application under section 91(1)) is designated under section 93A.”” |
|
| | Member’s explanatory statement
|
|
| | This amendment makes for Northern Ireland provision parallel to that made by NC26. |
|
| Secretary Iain Duncan Smith |
|
| | |
| | To move the following Clause— |
|
| | | “Public service defined benefits schemes: consequential amendments: |
|
| | |
| | (1) | In the Pension Schemes (Northern Ireland) Act 1993, in section 176 (general |
|
| | interpretation), in subsection (1), in the definition of “regulations”, after “means” |
|
| | insert “, unless the context otherwise requires,”. |
|
| | (2) | In that Act, in section 181 (Assembly etc control of regulations and orders)— |
|
| | (a) | in subsection (2) (regulations and orders subject to confirmatory |
|
| | procedure), at the end insert “and to regulations made by the Department |
|
| | of Finance and Personnel under section 93A(10)”; |
|
| | (b) | in subsection (4) (regulations and orders subject to negative resolution), |
|
| | for “shall” substitute “and regulations made by the Department of |
|
| | Finance and Personnel under section 91 or 93B shall”. |
|
| | (3) | In the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), in Article |
|
| | 14 (pension liberation: interpretation), in paragraph (4)(a) (meaning of |
|
| | “authorised way”), omit “subsection (2) or, as the case may be, subsection (3) |
|
| | |
| | Member’s explanatory statement
|
|
| | This amendment makes amendments to pensions legislation that are consequential on NC28 and |
|
| | |
| Secretary Iain Duncan Smith |
|
| | |
| | To move the following Clause— |
|
| | | “Meaning of “flexible benefit” |
|
| | In this Part “flexible benefit”, in relation to a member of a pension scheme, |
|
| | |
| | (a) | a money purchase benefit, |
|
|
|
| |
| |
|
| | (b) | a cash balance benefit, or |
|
| | (c) | a benefit, other than a money purchase benefit or cash balance benefit, |
|
| | calculated by reference to an amount available for the provision of |
|
| | benefits to or in respect of the member (whether the amount so available |
|
| | is calculated by reference to payments made by the member or any other |
|
| | person in respect of the member or any other factor).” |
|
| | Member’s explanatory statement
|
|
| | This is to be added to Part 4 of the Bill. The definitions are intended to govern the interpretation |
|
| | of the new clauses about independent advice, drawdown and lump sums (also to be added to Part |
|
| | 4). The definitions are also applied by some of the amendments to other legislation. |
|
| Secretary Iain Duncan Smith |
|
| | |
| | To move the following Clause— |
|
| | | “Meaning of “cash balance benefit” |
|
| | (1) | In this Part “cash balance benefit”, in relation to a member of a pension scheme, |
|
| | means a benefit calculated by reference to an amount available for the provision |
|
| | of benefits to or in respect of the member (“the available amount”) where there is |
|
| | a promise about that amount. |
|
| | (2) | But a benefit is not a “cash balance benefit” if, under the scheme— |
|
| | (a) | a pension may be provided from the available amount to or in respect of |
|
| | |
| | (b) | there is a promise about the rate of that pension. |
|
| | (3) | The promise mentioned in subsection (1) includes, in particular, a promise about |
|
| | the change in the value of, or the return from, payments made by the member or |
|
| | any other person in respect of the member. |
|
| | (4) | The promise mentioned in subsection (2)(b) includes a promise that— |
|
| | (a) | the available amount will be sufficient to provide a pension of a particular |
|
| | |
| | (b) | the rate of a pension will represent a particular proportion of the available |
|
| | |
| | (5) | A benefit is not excluded from the definition of “cash balance benefit” by |
|
| | subsection (2) merely because under the scheme there is a promise that— |
|
| | (a) | the rate or amount of the benefit payable in respect of a deceased member |
|
| | will be a particular proportion of the rate or amount of the benefit which |
|
| | was (or would have been) payable to the member, or |
|
| | (b) | the amount of a lump sum payable to a member, or in respect of a |
|
| | deceased member, will represent a particular proportion of the available |
|
| | |
| | Member’s explanatory statement
|
|
| | This is to be added to Part 4 of the Bill. The definitions are intended to govern the interpretation |
|
| | of the new clauses about independent advice, drawdown and lump sums (also to be added to Part |
|
| | 4). The definitions are also applied by some of the amendments to other legislation. |
|
| Secretary Iain Duncan Smith |
|
| | |
| | To move the following Clause— |
|
| | | “Interpretation of Part 4 |
|
| | |
| | |
|
|
| |
| |
|
| | “cash balance benefit” has the meaning given by section (Meaning of “cash |
|
| | |
| | “dependants’ drawdown pension”, in relation to a member, has the meaning |
|
| | given by paragraph 18 of Schedule 28 to the Finance Act 2004; |
|
| | “drawdown pension”, in relation to a survivor, has the meaning given by |
|
| | paragraph 4 of Schedule 28 to the Finance Act 2004; |
|
| | “flexible benefit” has the meaning given by section (Meaning of “flexible |
|
| | |
| | “normal pension age”, in relation to a benefit for a member of a pension |
|
| | scheme or a survivor of a member, means— |
|
| | (e) | the earliest age at which, or earliest occasion on which, the |
|
| | member or survivor is entitled to receive the benefit without |
|
| | adjustment for taking it early or late (disregarding any special |
|
| | provision as to early payment on the grounds of ill health or |
|
| | |
| | (f) | if there is no such age or occasion, normal minimum pension age |
|
| | as defined by section 279(1) of the Finance Act 2004; |
|
| | |
| | (g) | in relation to a member of a pension scheme means— |
|
| | (i) | any right which has accrued to or in respect of the |
|
| | member to future benefits under the scheme, or |
|
| | (ii) | any entitlement to benefits under the scheme, |
|
| | (h) | in relation to a survivor of a member of a pension scheme, means |
|
| | any right to future benefits, or entitlement to benefits, which the |
|
| | survivor has under the scheme in respect of the member; |
|
| | “survivor”, in relation to a member of an occupational pension scheme, |
|
| | means a person who has survived the member and has a right to future |
|
| | benefits, or is entitled to benefits, under the scheme in respect of the |
|
| | |
| | “trustees or managers” means— |
|
| | (i) | in relation to a scheme established under a trust, the trustees, and |
|
| | (j) | in relation to any other scheme, the managers. |
|
| | | Great Britain only definitions |
|
| | (2) | In any provision of this Part as it extends to England and Wales and Scotland— |
|
| | “money purchase benefits” has the meaning given by section 181 of the |
|
| | Pension Schemes Act 1993; |
|
| | “occupational pension scheme” has the meaning given by section 1 of the |
|
| | Pension Schemes Act 1993; |
|
| | “pension scheme” has the meaning given by section 1(5) of the Pension |
|
| | |
| | | Northern Ireland only definitions |
|
| | (3) | In any provision of this Part as it extends to Northern Ireland— |
|
| | “money purchase benefits” has the meaning given by section 176 of the |
|
| | Pension Schemes (Northern Ireland) Act 1993; |
|
| | “occupational pension scheme” has the meaning given by section 1 of the |
|
| | Pension Schemes (Northern Ireland) Act 1993; |
|
| | “pension scheme” has the meaning given by section 1(5) of the Pension |
|
| | Schemes (Northern Ireland) Act 1993.” |
|
| | Member’s explanatory statement
|
|
| | This is expected to be added to Part 4 of the Bill and is intended to govern the interpretation of the |
|
| | new clauses about independent advice, drawdown and lump sums (which are also expected to be |
|
| | |
|
|
| |
| |
|
| Secretary Iain Duncan Smith |
|
| | |
| | To move the following Schedule— |
|
| | “Rights to transfer benefits |
|
| | |
| | Pension Schemes Act 1993 (c. 48) |
|
| | 1 | The Pension Schemes Act 1993 is amended as follows. |
|
| | 2 (1) | Chapters 4 and 5 of Part 4 of the Act become Chapters 1 and 2 of a new |
|
| | |
| | |
| | (a) | before section 93 (and before the Chapter heading above it) insert— |
|
| | |
| | Transfers and contribution refunds”; |
|
| | (b) | for the Chapter heading above section 93 substitute— |
|
| | |
| | Transfer rights: general”; |
|
| | (c) | for the Chapter heading above section 101AA substitute— |
|
| | |
| | Early leavers: cash transfer sums and contribution refunds”. |
|
| | 3 | Until the coming into force of its repeal by Schedule 13 to the Pensions Act |
|
| | 2014, section 56 of the Pension Schemes Act 1993 (payment of state scheme |
|
| | premiums on termination of certified status: supplementary) has effect as if, in |
|
| | subsection (4)(b), for “Chapter 5 of Part 4” there were substituted “Chapter 2 |
|
| | |
| | 4 | In section 73 (form of short service benefit and its alternatives), in subsection |
|
| | (3), for “Chapter IV of this Part” substitute “Chapter 1 of Part 4ZA”. |
|
| | 5 | For sections 93 to 94 substitute— |
|
| | |
| | (1) | This Chapter applies to a member of a pension scheme if all of the |
|
| | following conditions are met. |
|
| | (2) | Condition 1 is that the member has accrued rights to any category of |
|
| | benefits under the scheme rules. |
|
| | (3) | Condition 2 is that no crystallisation event has occurred in relation to |
|
| | the member’s accrued rights to benefits in that category (see |
|
| | |
| | |
| | (a) | the member is no longer accruing rights to benefits in that |
|
| | category (see subsection (8)), and |
|
|